Customers air complaints about auto insurance industry as state holds hearing in Springfield on proposed new regulations

SPRINGFIELD – Customers and an agent had a chance to air their complaints with the auto insurance industry Thursday as the state Attorney General’s Office conducted a public hearing on a proposed new set of regulations in Springfield.

The new regulations are aimed at providing greater consumer protection within the managed competition system that went into effect in April 2008, according to a prepared statement from the office of Massachusetts Attorney General Martha M. Coakley.

The new rules could: protect consumers from discriminatory factors in the setting of rates, require insurance rating practices to be fair and transparent, prevent misleading advertisements and make consumers aware of discounts. The rules will also protect drivers from unfair interest rates or cancellation charges, stop agents from steering people to policies based on commissions and require prompt responses to claims.

Also on Thursday, Gov. Deval L. Patrick’s press office touted a study by California-based InsWeb Corp. that found Massachusetts has the most affordable auto insurance rates in the country. The first year of managed competition resulted in $270 million in savings on premiums, the governor’s office said.

Matthew G. Levy, of Springfield, said he switched to Liberty Mutual Group after the company offered to cut his monthly rates from $160 a month to $111 a month. But instead he ended up getting a higher rate because he didn’t sign up for automatic bill paying from his checking account. Then he got a flurry of late and cancellation fees.

Donald F. Baldini, a senior legislative counsel for Liberty Mutual, approached Levy after the meeting to apologize for the way Levy was treated and offered to help.

Peter T. Robertson, a lawyer for the Massachusetts Insurance Federation, said the industry objects to the new regulations because the state Commissioner of Insurance already regulates car insurance sales, he said.

According to the Attorney General’s office, the regulations are still pending and written comments will be accepted until Aug. 6 at: Office of the Attorney General, Cassandra Roeder, Insurance and Financial Services Division, One Ashburton Place, Boston, MA 02108 or by e-mail at Cassandra.Roeder@state.ma.us or by fax at (617) 727-0184.